Bill Text: NJ S3845 | 2024-2025 | Regular Session | Introduced
Bill Title: Requires BPU to consider affordability to ratepayers before approving base rate cases for electric public utilities.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced) 2024-10-28 - Introduced in the Senate, Referred to Senate Economic Growth Committee [S3845 Detail]
Download: New_Jersey-2024-S3845-Introduced.html
Sponsored by:
Senator BRIAN P. STACK
District 33 (Hudson)
Senator ANGELA V. MCKNIGHT
District 31 (Hudson)
SYNOPSIS
Requires BPU to consider affordability to ratepayers before approving base rate cases for electric public utilities.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning the approval of certain electric public utility rate increases and supplementing Title 48 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. In determining just and reasonable rates for any electric utility pursuant to R.S.48:2-21, R.S.48:2-21.1, or section 31 of P.L.1962, c.198 (C.48:2-21.2), the board shall consider affordability to ratepayers as a factor in determining if an increase, change, or alteration to any existing individual rates, joint rates, tolls, charges or schedules thereof is just and reasonable.
2. This act shall take effect immediately and shall apply to petitions submitted to the Board of Public Utilities pursuant to R.S.48:2-21, R.S.48:2-21.1, or section 31 of P.L.1962, c.198 (C.48:2-21.2) on or after the date of enactment.
STATEMENT
This bill requires the Board of Public Utilities (board) to consider affordability to ratepayers as a factor in determining whether an electric utility rate increase proposed as part of a base rate case is found to be just and reasonable.
Under current law, the board may approve a petition by an electric public utility to increase, change, or alter any existing utility rates upon determination that the increase, change, or alteration is just and reasonable. Currently, the primary factors considered by the board in the determination of justness and reasonableness include the public utility's property valuation (i.e., the rate base), the public utility's expenses, and the public utility's rate of return.
